Treasury Secretary Steven Kennedy told a Senate estimates hearing that his department is modelling the impact of changes to the capital gains tax and negative gearing regimes.
Kennedy said that Treasury undertakes such modelling “from time to time”, but emphasised that the federal government had not asked it to do so and is not considering any changes to these tax breaks.
He also contended that reducing capital gains tax (CGT) deductions for investors would do more to put downward pressure on house prices than negative gearing reforms.
